PROVIDENCE, R.I. — Cranston Mayor and Republican gubernatorial candidate Allan Fung is urging the General Assembly to reject any proposed pension-settlement that “undermines” the $100 million-plus in savings the 2011 pension overhaul produced for the

PROVIDENCE, R.I. — Cranston Mayor and Republican gubernatorial candidate Allan Fung is urging the General Assembly to reject any proposed pension-settlement that “undermines” the $100 million-plus in savings the 2011 pension overhaul produced for the cities and towns.

Amid strong signs that negotiators have struck an undisclosed agreement to end the state’s court fight with its public employee unions over the 2011 law changes, Fung said:

“While I can appreciate the parties’ desire to negotiate a resolution to pending litigation that holds enormous implications for pension beneficiaries and the entire State of Rhode Island, Governor Chafee and the General Assembly must have the resolve to reject any proposal to undermine the benefits of this law to both the taxpayers of Rhode Island and the long-term health of the state pension fund.”

“The Retirement Security Act was enacted with overwhelming and bipartisan support in the General Assembly after an in-depth public debate on the issue…While the effects may be difficult for many retired workers, our state budget simply has no room for increased spending on pension benefits.”

Striking a settlement that undermines “the long-term stability of the pension fund would only serve to delay difficult choices,” he said.

Fung recently announced that the Rhode Island Superior Court had approved his plan to “reform pension benefits for retired Cranston police and firefighters.” His plan, which unlike the state overhaul involves contract concessions, was ratified by the City Council last month.

Judge Sarah Taft-Carter approved a consent decree that incorporates pension changes that Fung negotiated last year with the police and fire labor unions and that, he said, would save taxpayers $6 million right away.

Among other changes, the decree would authorize suspension of annual cost-of-living increases every other year for 10 years, beginning in the current fiscal year, for members of the police and fire forces who were hired before 1995. Members’ widows would be exempt.

It also would cap such COLAs at 3 percent compounded interest. Previously, retirees could get more than 3 percent, compounded, if current employees were promised more.

“I am calling on current elected officials to demonstrate the type of leadership that I have shown in Cranston and to reject any back-room deal that would increase the burden on taxpayers or threaten the long-term health of the pension fund,” he said.

Fung reiterated his comments on the day after the Rhode Island League of Cities and Towns went public with a “white paper” warning of the huge, financial risks to local taxpayers if the pension settlement turns back the clock on the 2011 overhaul. The overhaul was championed by Gen. Treasurer Gina Raimondo, a Democrat who is also running for governor.